The bank market in the US generated a profit of USD 171.3 billion in 2016. Financial policy analysts at Bloomberg Intelligence believe that the American banking system is slowly reviving from the depression crisis.
About 44% of the 15.3 trillion in assets are held by the top five banks in the US.
Interest rates should rise slightly giving banks enough room to set off regulatory capital and liquidity requirements. Even though long-term rates will be higher, the residential and commercial mortgage business is likely to grow in order to meet the continuing demand for space. Higher interest rates boost business growth and higher wages and rising household incomes increases the loan opportunities, especially as the net interest margin rises. Investment banks should continue to perform well and will likely induce client hedging, encouraged by the emerging clarity on the new administration’s policies and the Brexit transition.
End-to-end customer experience is becoming the focus of the banking market. Banks are continuing to reform their operating models using emerging technologies for greater efficiency and competitiveness.
Cloud based platforms and cognitive technologies are the priority, as an aggressive move towards faster and secure digital payments is expected. These value based customer experience solutions are forecast to drive the banking industry’s long term profitability.
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